What is the purpose of the ABI Memorandum of Understanding - Subrogated Motor Claims?

The purpose of the ABI Memorandum of Understanding regarding subrogated motor claims primarily revolves around establishing a framework for handling such claims. This agreement emphasizes the principles of honesty and transparency, which are crucial in the insurance industry to foster trust and integrity in the claims process. The objective is to create a consistent understanding and approach among insurers, allowing them to manage subrogation claims more effectively and fairly.

While the other options present various aspects that could relate to claims management—such as liability apportionment, loss sharing formulas, and specific agreements—the memorandum's core focus is on instilling a culture of honesty and transparency among those involved. This helps ensure that subrogated claims are processed in a manner that is fair and equitable to all parties involved, maintaining the ethical standards expected in the insurance sector.